As the Indian pharma sector grapples with the uncertainty of US President Donald Trump’s potential tariff announcement, smaller players are formulating a survival strategy. The plan includes pursuing niche segments in the domestic market, and finding new export destinations, to compensate for any potential loss of the US markets.
The prohibitive US tariffs on China, may also encourage many mid-sized Indian firms to go upstream and manufacture bulk drugs (active pharma ingredients or APIs).
According to Nilesh Patel, managing director at Kashmik Formulation, the drugs meant for non-communicable diseases (NCDs) segment, also known as lifestyle diseases, could be in focus. “Our company is exploring therapies for NCD segments such as cardiovascular diseases and obesity. Additionally, we are also exploring opportunities in API Pharmaceutical Ingredient (API) manufacturing.”
Given the changing lifestyle of Indians, these conditions are becoming increasingly prevalent and could cost India nearly $6 trillion by 2030, according to the World Health Organization.
Hemant Koshia, Commissioner of the Food & Drug Control Administration (FDCA) Gujarat, said, “High tariffs will ultimately raise the cost for US consumers, and while it is India’s biggest market, companies should begin branching out to regions such as the EU, Japan and the rest of the world.”
Smaller pharma companies in India comply with the World Health Organization’s (WHO) Technical Report Series (TRS) guidelines, which ould allow them to export to the 194 member countries of WHO.
Patel noted that emerging markets such as Africa, Southeast Asia and Latin America, which are witnessing an increasing demand for generic medicines. Currently, South Africa is one of the largest importers of Indian pharmaceuticals, importing products worth $718.54 million during FY 24. “If implemented, the tariffs could significantly impact Indian pharmaceutical exports, potentially compelling companies to shift manufacturing operations to the US. However, such a transition is expected to take 2–3 years to materialize,” he said.
Pravin Patel, Founder of HOF Pharmaceuticals, is also steering his business to similar markets. He said, “Tariffs are benign in parts of Latin America, Asia and the African subcontinent, particularly because they do not have robust local manufacturing capacity, and their governments actively promote drug imports, especially from countries like India due to the affordability of medicines.” He also stated that while tariffs are a critical factor in developed markets, they are not a major concern for HOF Pharma’s key export destinations. Furthermore, the company is capitalising on pharma products that are set to go off-patent in the near future. “This segment presents significant business potential. We are researching on medicines that are slated to go off-patent and developing newer products in advance,” Patel from HOF Pharme added.
Patents for approximately 20-25 high-revenue drugs are set to expire in 2025-2026, including cancer immunotherapy drug Keytruda developed by Merck, Ozempic by Novo Nordisk for diabetes and anti-obesity treatment, along with immunology drug Cosentyx by Novartis.
CORONA Remedies, on the other hand, is tapping into the urology drug market, which was valued at $ 1.02 billion in 2024 and is anticipated to have a CAGR of 6.90% through 2030. The company’s CEO & Managing Director, Nirav Mehta, said, “With an ageing population and increased prevalence of urological issues, this segment is poised for significant growth and innovation. Our urology portfolio addresses issues such as benign prostatic hyperplasia, renal calculi and urinary tract infections. We are also collaborating with Ferring Pharmaceuticals, a subsidiary of its Swiss-based namesake, to treat bedwetting.” Mehta opines that despite market fluctuations, projections for a 14.3% year-on-year growth within the Nifty Pharma index underscores the sector’s resilience and diverse opportunities that remain untapped.